The ratings for Cendant Corp. reflect its solid position in residential real estate and auto rental, relatively good position in hospitality and travel distribution, and niche position in financial services. Ratings also reflect the company's ownership of many well-regarded brands, the company's strong historical cash flow, and the expectation for improving credit measures. These factors are offset by the company's exposure to the travel and leisure industry, which may be affected by cyclical economic trends or geo-political events, and a historically aggressive growth strategy. When reviewing Cendant, Standard&Poor's excludes the businesses associated with its wholly owned subsidiary, PHH Corp. This treatment underscores the view that PHH is managed and financed separately from its parent, and that sufficient firewalls
